Peraton might pursue IPO after integrating acquisitions

US government technology provider Peraton, which US private equity firm Veritas Capital acquired from Harris Corporation four years ago, could be ready for another ownership change as early as 2023, according to Peraton's top executive.

Peraton is based in Herndon, Virginia. (Peraton)

When Peraton realises the cost savings and increased competitiveness it expects to achieve with its two recent major acquisitions, Veritas might seek to cash in on its investment, said Stu Shea, Peraton's chairman, president, and CEO. One option would be an initial public offering (IPO), while another would be a merger with another company.

“If we do all the right things, we will be a great company to invest in,” Shea told Janes in a recent interview.

Peraton is currently focused on absorbing the acquisitions, which expanded the size of its 3,500-person workforce to 22,000 employees. Peraton finished buying Northrop Grumman's information technology services business for USD3.4 billion in February and completed its USD7.1 billion purchase of Perspecta in May.

As part of the integration process, Peraton will have to blend various businesses processes and systems and hundreds of policies. It plans to shed more than a third of its 150 facilities over the next two years to eliminate duplication.

“We think that we'll probably keep both the existing Peraton headquarters building in Herndon, Virginia, and the Perspecta headquarters building, which is in Centreville, Virginia,” in the Chantilly area, Shea said. “Then we'll decide where we're going to be long-term with the corporate staff. My sense is that we will probably keep the Herndon and Chantilly buildings but we will migrate over time into Chantilly, mostly because it's a much newer building.”